Kering Says Sales Were Flat in 1Q, But Hails Recovery in Chinese Demand
25 Abril 2023 - 1:15PM
Dow Jones News
By Joshua Kirby
Kering SA on Tuesday booked flat sales growth for the first
three months of the year, lagging luxury-fashion rivals, but said
it was encouraged by monthly progress and a recovery in Chinese
spending.
The French group made total sales of 5.08 billion euros ($5.61
billion), 1% higher on a comparable basis compared with the EUR4.96
billion it notched up in the same period last year. Star brand
Gucci contributed EUR2.62 billion, flat on year but slightly ahead
of analysts' forecasts, according to a poll provided by FactSet
ahead of the update.
The result stands in contrast to Kering's rivals, such as Hermes
International SCA and the fashion division of luxury giant LVMH
Moet Hennessy Louis Vuitton SE, both of which reported double-digit
growth in the quarter.
A steady improvement in China helped the group return to growth
in the Asia-Pacific region, with the country itself turning
positive on-year in mid-March, finance chief Jean-Marc Duplaix said
in a conference call. In the U.S., however, performance was hit by
a polarization of the market, with more aspirational customers
"less present" in the market, he said.
Kering's second-largest brand, Yves Saint Laurent, continued
recent momentum with an 8% rise in sales to EUR806 million, thanks
to good performance in ready-to-wear and accessories, Kering said.
The other-houses division, home to Balenciaga and Alexander
McQueen, booked a decline of 9% as a result of a big drop in
wholesale revenue, in line with a streamlining strategy, the
company said.
Write to Joshua Kirby at joshua.kirby@wsj.com;
@joshualeokirby
(END) Dow Jones Newswires
April 25, 2023 12:00 ET (16:00 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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